Unit 9: Transfer of Title

Question 1

Title

Answer 1

The right to or ownership of land. The evidence of ownership of land. It is not an actual printed document.

Question 2

Voluntary Alienation

Answer 2

The act of voluntarily transferring property to another such as by gift or sale. To transfer during one’s lifetime, the owner must use some form of deed of conveyance.

Question 3

Deed

Answer 3

A written instrument that, when executed and delivered, conveys title to or an interest in real estate. The statute of frauds requires all deeds to be in writing. A deed is executed (signed) only by the grantor.

Question 4

Grantor

Answer 4

The owner who transfers title.

Question 5

Grantee

Answer 5

The person who is acquiring title.

Question 6

List the Elements of a Deed

Answer 6

1. Grantor who has the legal capacity to execute (sign) the deed
2. Date
3. Grantee names with reasonable certainty to be identified
4. Statement of consideration
5. Granting Clause (words of conveyance)
6. Habendem Clause (to define ownership taken by the grantee)
7. Accurate legal description of the property conveyed
8. any relevant exceptions or reservations
9. Signature of the grantor, which must be acknowledged (notarization)
10. Delivery of the deed and acceptance by the grantee to pass title
    May also include:
11. Description of any limitations on the conveyance of the a full fee simple estate
12. Recital of any exceptions and reservations (“subject to” clause) that affect title to the property

Question 7

Is a deed executed by someone who is mentally impaired at the time void or voidable?

Answer 7

Voidable. If, however, the grantor has been judged legally incompetent, the deed will be void.

Question 8

Which clause of a deed should specify the grantees rights in the property

Answer 8

The granting clause should specify the rights of grantees (if there is more than one) and might state that the grantees will take title as joint tenants or tenants in common. This is especially important when specific wording is necessary to create a joint tenancy.

Question 9

Granting Clause

Answer 9

Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. This clause is generally worded as “convey and warrant”, “grant”, “grant, bargain, and sell,” or the like.

Question 10

Habendum Clause

Answer 10

That part of a deed beginning with the words “to have and to hold,” following the granting clause, and defining the extent of ownership the grantor is conveying.

Question 11

When is land considered adequately described in a valid deed?

Answer 11

If a competent surveyor can locate the property using the description (Granting Clause: Words of Conveyance).

Question 12

Acknowledgment

Answer 12

A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document. In PA, an unacknowledged deed is not eligible for recording. Although an unrecorded deed is valid between the grantor and grantee, it may not be a valid conveyance (to secure good title) against claims by subsequent innocent purchasers.

Question 13

When is Title said to “pass”?

Answer 13

When a valid deed is delivered and accepted. The effective date that title transfers is the date the deed itself is delivered. Delivery and acceptance are usually presumed if the deed has been examined and registered by the county clerk.

Question 14

General Warranty Deed

Answer 14

A deed to the premises. It is used in most real estate deed transfers and offers the greatest protection of any deed.

Question 15

Covenant of Seisin

Answer 15

Grantors warrant that they own the property and have the right to convey its title. Seisin simply means possession. The grantee may recover damages up to the full purchase price if this covenant is broken.

Question 16

Covenant against encumbrances

Answer 16

The grantor warrants that the property is free from any liens or encumbrances, except those specifically referenced in the deed. Encumbrances generally include mortgages, mechanics’ liens, and easements. If this covenant is breached, the grantee may sue for expenses to remove the encumbrance(s).

Question 17

Covenant of quiet enjoyment

Answer 17

The grantor guarantees that the grantee’s title will be good against third parties who might bring court actions to establish superior title to the property. If the grantee’s title is found to be inferior, the grantor is liable for damages.

Question 18

Covenant of further assurance

Answer 18

The grantor promises to obtain and deliver any instrument needed to make the title good. For instance, if the grantor’s spouse has failed to sign away spousal rights, the grantor must deliver a quitclaim deed executed by the spouse to clear the title.

Question 19

Covenant of warranty forever

Answer 19

The grantor guarantees to compensate the grantee for the loss sustained if the title fails any time in the future.

Question 20

List the 5 Covenants in a General Warranty Deed

Answer 20

1. Covenant of Seisin
2. Covenant against encumbrances
3. Covenant of quiet enjoyment
4. Covenant of further assurance
5. Covenant of warranty forever

Question 21

True or False: The covenants in a general warranty are limited to matters that occurred during the time the grantor owned the property.

Answer 21

FALSE. The 5 covenants in a general warranty deed are not limited to matters that occurred during the time the grantor owned the property; they tend back to its origins. Grantors defend the title against themselves and all those who previously held title.

Question 22

What are some of the words used to convey a General Warranty Deed?

Answer 22

convey and warrant

warrant generally

Question 23

A Special Warranty Deed contains which two basic warranties?

Answer 23

1. That the grantor received title

2. That the property was not encumbered during the time the grantor held title, except as noted in the deed

Question 24

The granting clause of a Special Warranty Deed generally contains which specific words?

Answer 24

Grantor remises
releases
alienates
and conveys

Question 25

What is viewed is providing adequate protection to the grantee in areas where a Special Warranty Deed is used?

Answer 25

Title Insurance

Question 26

Special Warranty Deed

Answer 26

A deed in which grantors warrant, or guarantee, the title only against defects arising during the period of their tenure and ownership of the property and not against defects existing before that time, generally using the language, “by, through or under the grantor but not otherwise.”

Question 27

Bargain and Sale Deed

Answer 27

A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion.

Question 28

Quitclaim Deed

Answer 28

A conveyance by which grantors transfer whatever interest they have in the real estate, without warranties or obligations.

Question 29

What type of language does the granting clause of a Bargain and Sale Deed generally include?

Answer 29

The granting clause of a Bargain and Sale Deed usually states a person’s name or the name of an entity and the words grants and releases or grants, bargains, and sells.

Question 30

What is one of the most common uses of the Quitclaim Deed?

Answer 30

Simple transfer of property from one family member to another

Question 31

What type of deed is used to cure a cloud defect on a title?

Answer 31

a quitclaim deed

Question 32

Deed in Trust

Answer 32

An instrument that grants a trustee full power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustee’s use of these powers under the provisions of the trust agreement. A deed in trust is the means by which a trustor conveys real estate to a trustee for the benefit of a beneficiary. The real estate is held by the trustee to fulfill the purpose of the trust.

Question 33

Trustee’s Deed

Answer 33

A deed executed by a trustee conveying land held in a trust. The trustee’s deed must state that the trustee is executing the instrument in accordance with the powers and authority granted by the trust instrument.

Question 34

List some deeds executed pursuant to court order.

Answer 34

Executors’ and administrators’ deeds
masters’ deeds
sheriffs’ deeds

These deeds are established by state statute and are used to convey title to property that is transferred by court order or by will. The form of such a deed must conform to the laws of the state in which the property is located.

Question 35

Transfer Tax

Answer 35

Tax stamps required to be affixed to a deed by state and/or local law.

Question 36

What is the current transfer tax in PA?

Answer 36

1% is imposed on the full consideration paid for the real estate

Question 37

True or False: PA State Law permits local taxing districts (city, borough, township and school district) to impose a transfer tax.

Answer 37

TRUE: Local transfer taxes are generally 1% of the consideration, though municipalities with a home rule charter government are permitted to charge more.

Question 38

List some deeds that are normally exempt from the transfer tax.

Answer 38

1. transfers between parent and child or between siblings
2. deed not made in connection with a sale, such as changing joint tenants
3. conveyances to, from, or between governmental bodies
4. deeds between charitable, religious, or educational institutions
5. deeds securing debts or deeds releasing property as security for a debt
6. partitions
7. tax deeds
8. deed pursuant to mergers of corporations
9. deed from subsidiary to parent corporations for cancellations of stock

Question 39

How is transfer of property by ground lease accomplished?

Answer 39

Lease assignment. Transfer taxes are charged on leases in excess of 30 years.

Question 40

Involuntary Alienation

Answer 40

The act of involuntarily transferring property to another, such as through eminent domain or adverse possession.

Question 41

Intestate

Answer 41

When a person dies with no will and no heirs, title to the estate passes to the state by the state’s power of escheat.

Question 42

Escheat

Answer 42

The reversion of a property to the state or county, as provided by state law, in cases where a descendant dies intestate without heirs capable of inheriting, or when the property is abandoned.

Question 43

Adverse Possession

Answer 43

The actual, visible, hostile, notorious, exclusive and continuous possession of another’s land under a claim of title. Possession for a statutory period may be a means of acquiring title.

Question 44

What is the statutory time in PA for which uninterrupted possession of land endure?

Answer 44

21 years.

Question 45

What is tacking?

Answer 45

Successive periods of adverse possession by different adverse possessors that can be be combined so that a person who is not in possession for the entire statutory time may establish a claim.

Question 46

Testate

Answer 46

Having made and left a valid will

Question 47

Will

Answer 47

A written document, properly witnesses, providing for the transfer of title to property owned by the deceased, called the testator. This differs from a deed, which must be delivered during the lifetime of a grantor and which conveys a present interest in property.

A will cannot supersede the state laws of dower and curtesy, which were enacted to protect the inheritance rights of a surviving spouse. When a will does not provide a spouse with the minimum statutory inheritance, the spouse may demand it from the state.

Question 48

Testator

Answer 48

A person who has made a valid will. A woman is often called the testatrix, although a testator can be use for either gender.

Question 49

Devise

Answer 49

A gift of real property by will. The donor is the devisor and the recipient is the devisee.

Question 50

Bequest

Answer 50

Gift of personal property by will

Question 51

Legacy

Answer 51

Gift of money by will

Question 52

Probate

Answer 52

A legal process by which a court determines who will inherit a dependent’s property and what the estate’s assets are.

Question 53

Codicil

Answer 53

A document which details any modification, amendment or addition to a previously executed will.